Labour U-turns on workers’ rights manifesto pledge

The Labour government has U-turned on its manifesto pledge to provide workers with unfair dismissal protections from day one.

In an update published by the Department for Business and Trade, the government said it had convened a ‘series of constructive conversations’ between unions and business representatives which informed its decision to backtrack on day-one protection against unfair dismissal.

Under the agreed framework, employees will need to have worked for six months to claim unfair dismissal, except in the case of discrimination and where there is automatically unfair grounds for dismissal.

In the party’s election manifesto, it pledged to deliver basic day-one rights to parental leave, sick pay, and protection from unfair dismissal.

After it was announced that day-one protection form unfair dismissal would not be provided, ministers have defended this move as a ‘pragmatic’ one.

Education Secretary Bridget Phillipson told the BBC this move was necessary to ensure timely deliver of the ‘wider benefits’ in the employment rights bill.

In its update on the employment rights bill, the government said that “Reforms to benefit millions of working people, including some of the lowest paid workers, would otherwise be significantly delayed if the Bill does not reach Royal Assent in line with our delivery timetable”.

Previously, the qualifying period for unfair dismissal was 24 months, meaning that workers were only protected after working in a job for more than two years.

Once the Bill is passed, this will be updated to six months, and sick pay and paternity leave will be available to employees from day one.

Businesses involved in the discussions welcomed this compromise, noting that it provides them with much-needed clarity and give confidence to businesses in hiring and supporting workers.

“The Government was pleased to facilitate these discussions and to set an example of the benefits of working together, and remains committed to continue engaging with trade unions, business and employers to make working lives better, support businesses and, vitally, deliver economic growth and good job creation,” the government said.

Now read: The end of LISA – what to expect from the UK’s ISA changes in 2026